Archive for
June, 2012

The San Bernardino County Grand Jury issued a 100-page report Friday blasting Victorville for decisions that have jeopardized the city’s solvency, including mishandling bond funds, losing track of $13 million and potentially breaking the law by financing failed energy ventures with restricted money. Read more about the report here and read the entire report here.

Here are the five areas of concern cited by the grand jury. Click on the headlines below each section to read related background stories:

VICTORVILLE • In a surprising turn of events, bankrupt Victor Valley Community Hospital agreed to a $33.8 million purchasing offer by Riverside-based KPC Global medical group, who had once failed to close out a deal.

Judge Catherine Bauer approved their agreement Wednesday for the second time at the federal bankruptcy court in Santa Ana. The judge also approved KPC to lend $4 million to keep the hospital open until the deal seals. Now it’s up to California Attorney General Kamala Harris to give the final go sign.

A coalition of 18 financial industry trade groups warned San Bernardino County that a proposal to use eminent domain to seize mortgage loans could make it harder for others to get loans.

BY IMRAN GHORI STAFF WRITER ighori@pe.com

Published: 29 June 2012 05:02 PM

A coalition of financial industry trade groups raised strong objections this week to a proposal being considered by San Bernardino County to use eminent domain to seize underwater mortgage loans.

In a letter to the San Bernardino County Board of Supervisors and Fontana and Ontario city councils dated Thursday, June 28, the groups state that the program intended to help homeowners could actually end up harming them.

A Sacramento judge on Friday halted Gov. Jerry Brown’s drive to place his tax initiative atop the November ballot as the court examines recent signature counting and a new law intended to give his measure a leg up.

WASHINGTON — Congress, in a rare display of bipartisanship, on Friday sent to President Obama a roughly $105-billion transportation bill that lawmakers from both parties touted as perhaps the largest jobs measure of the year.

The measure also would avert a doubling of interest rates for millions of college student loans that was due to take effect Sunday.

VICTORVILLE • The San Bernardino County Grand Jury issued a 100-page report Friday blasting Victorville for decisions that have jeopardized the city’s solvency, including mishandling bond funds, losing track of $13 million and potentially breaking the law by financing failed energy ventures with restricted money.

REDLANDS — The nomination period for those wishing to throw their hats into this November’s city election is still a few weeks away. But buzz is generating around town on who is and who isn’t going to run.

Four positions are up for grabs, including the two council seats occupied by Mayor Pete Aguilar and Councilman Jerry Bean.

Molly Munger

After Gov. Jerry Brown signed legislation that would likely put his tax initiative atop the November ballot, a rival tax campaign filed suit Thursday to block his measure from taking first place.

The competing income tax campaign, financed by attorney Molly Munger, wants Brown’s measure to appear below its own initiative this fall, citing problems in the qualifying process that allowed Brown to jump ahead.

The governor uses line-item vetoes to eliminate 14,000 children from a care program, reduce Cal Grants college scholarships and trim state park funding.

By Chris Megerian and Michael J. Mishak, Los Angeles Times June 29, 2012

SACRAMENTO — Gov. Jerry Brown sliced $195.7 million from the budget that lawmakers sent him, disappointing fellow Democrats by taking money from child care, college scholarships and state parks and adding more to a rainy-day fund.

In a series of line-item vetoes detailed Thursday, Brown brought general fund spending to $91.3 billion and the overall state budget, including dedicated funds and bond money, to $142.4 billion.

Dan Walters

By Dan Walters Published: Friday, Jun. 29, 2012 – 12:00 am | Page 3A

I told you so. Or, more accurately, I was one of several commentators who warned voters two years ago that a ballot measure to reduce the legislative vote margin on the state budget from two-thirds to a simple majority could backfire.

SAN BERNARDINO – The San Bernardino International Airport Authority’s board approved a new budget that while outlining about $7 million in general expenses, does not assume any revenue from passenger airline service.

A year after a county civil grand jury criticized the management of the San Bernardino International Airport and questioned the increasingly unchecked role of a private developer, plenty has changed.

The government agencies overseeing the airport have a new director, new legal battles and now a new budget that doesn’t forecast for any commercial flights landing there for the next 12 months. The agencies also plan to seek new legal counsel.

A new policy that could slash the amount of federal funding San Bernardino County receives for housing illegal immigrants at its jails has the Board of Supervisors fighting mad.

On Tuesday, the board authorized a request for funding from the federal government to cover at least part of the costs for incarcerating illegal immigrants suspected of criminal activity, which cost the county more than $17 million last year.

The governor signs a budget that makes deep cuts to social services and assumes that voters will pass $8 billion in tax hikes in November. (AP Photo/Reed Saxon)

By Chris Megerian, Los Angeles Times June 28, 2012

SACRAMENTO — State lawmakers finished their work on the budget, and Gov. Jerry Brown signed it late Wednesday, ending the haggling over final details of California’s spending plan.

The budget closes the state’s $15.7-billion deficit with cuts in social services and depends on voters approving more than $8 billion in temporary tax hikes at the ballot box in November. Without a higher sales tax and increased levies on the wealthy, the governor says, the state will cut billions from public schools.

California’s housing crisis isn’t over, with 11 percent of borrowers in the state at risk of foreclosure, according to a new report released this week by the nonprofit Center for Responsible Lending, a Washington-based think tank.

The pension fund is preparing to rebid its health insurance business, and two of its current plans, Anthem and Blue Shield, are likely to face intense competition.

By Chad Terhune, Los Angeles Times June 28, 2012

California’s biggest healthcare buyer isn’t happy about its $7-billion annual medical bill climbing almost 10% next year, and the state’s big insurers may be feeling the heat.

The California Public Employees’ Retirement System is preparing to rebid its health insurance business this fall for 1.3 million members, and two of its current plans, Anthem Blue Cross and Blue Shield of California, are likely to face intense competition as the giant pension fund considers its options.

Findings from an unprecedented three-year Grand Jury investigation into allegations of fiscal mismanagement and corruption in Victorville will be released Friday. The city is also under investigation by the FBI and the Securities and Exchange Commission, official sources say.

Joe Nelson, Staff Writer Posted: 06/26/2012 01:19:33 PM PDT

Findings from a three-year grand jury investigation into allegations of fiscal mismanagement and corruption in Victorville are expected to be released Friday.

The grand jury concluded its unprecedented investigation in April, but Victorville City Manager Doug Robertson, who reviewed the report, said he signed a confidentiality agreement and cannot discuss any of the findings until its release to the public Friday.

Changes to Riverside County’s public pension system should save $856 million over 10 years and after that, the system’s assets might cover its billions of dollars in liabilities, according to county officials.

SACRAMENTO — A package of budget bills going before the Legislature would allow school districts to cut the school year to 160 days if voters reject higher tax levies this fall, a significant drop from the 175-day calendar now authorized.

Gov. Jerry Brown’s revised spending plan last month called for letting districts reduce the school year by a total of 15 additional days over two years, 2012-13 and 2013-14.

ONTARIO – Despite the blow of losing its redevelopment agency, and an economy that won’t turn around, the City Council has approved a $396 million operating budget that includes the addition of a new $6 million emergency operations center and replacing 33 police vehicles and three fire engines.

But in order to do so, the city dipped into special reserves – $5.9 million this year – set aside to deal with economic downturn.

Capitol Alert The latest on California politics and government June 26, 2012

California voters heading to the polls in November will consider a package of proposed fixes for state governance that includes changes to the budget process.

The constitutional amendment, backed by the California Forward Issue Action Fund, would switch the state to a two-year, performance-based budgeting process and allow the governor to make cuts on his own in times of fiscal emergency. It would also enact legislative transparency measures and let local governments to change or opt out of certain laws and regulations.

More legislative shenanigans appear to be in the works as state lawmakers prepare to vote on the final pieces of the state budget Wednesday.

One newly introduced budget trailer bill would create a statewide authority to negotiate union agreements for In-Home Supportive Services workers. The IHSS program is managed at the county level, where collective bargaining agreements are currently negotiated.

The California Fourth District Court of Appeal, Division Two, on Tuesday, upheld a superior court ruling dismissing a lawsuit brought by San Bernardino County against the San Bernardino County Public Attorneys Association (SBCPAA).

Emmerson

Posted on | June 25, 2012

Legislation by state Sen. Bill Emmerson that would let counties raise recording fees on certain real-estate documents didn’t get a warm welcome Monday from many of his fellow Republicans in the Assembly.

The bill by Emmerson, R-Hemet, would allow counties to increase real-estate recording fees from $3 to $10, with the extra money paying to beef up real-estate fraud protection and prosecution. The California District Attorneys Association sponsored the measure.

A visit to Riverside by a Louisiana congressman underscores the importance of an Inland congressional race to Republicans as they try to keep and add to their House majority in November.

Steve Scalise, R-La., attended a fundraiser Monday, June 25, for John Tavaglione, a Republican and Riverside County supervisor running for the 41st Congressional District seat in a Nov. 6 runoff against Democrat and Riverside Community College District trustee Mark Takano.

BARSTOW • County court officials say they are looking at closing the Barstow courthouse among other options as they brace for “staggering” funding cuts from the state.

Under the proposed state budget, California Superior Courts in San Bernardino County could see a projected $21 million in cuts for the fiscal year beginning July 1. That’s a fifth of their current operating budget, according to Court Executive Officer Stephen Nash. The cuts would include a one-time reduction of between $14 and $15 million to the court’s reserve — slashing more than half of the $27.5 million currently saved in the fund.

Two days before California lawmakers were scheduled to vote on a new state budget, details emerged Monday on new provisions that could help Gov. Jerry Brown’s tax initiative at the polls.

One of the biggest surprises was language propelling all bond measures and constitutional amendments to the top of the ballot, likely ensuring that Brown’s tax hike on sales and upper-income earners will take the favorable lead spot on a November ballot chock full of voter questions.

Sacramento –As a vote nears on the final details of a 2012-13 budget, Gov. Jerry Brown has persuaded leaders of the state’s largest public employee union to agree to a key portion of his plan to reduce state spending, a nearly 5 percent pay cut.

The governor wasn’t the only one to get a win this weekend. The budget plan now includes a guarantee that tuition at the University of California and California State University systems won’t increase this year or next year – with a caveat.

Dan Walters

A few days ago, the Pew Center on the States released a report on the nationwide gap between promises made to public employees for pensions and what states are spending to close the gap.

On paper, California isn’t in awful shape. Its major pension program, with $516.3 billion in liabilities, was reported to be 78 percent financed, just shy of the 80 percent level that actuaries generally advocate.

A planned park in Wildomar has become a political battlefield in the race for the First District Riverside County supervisor seat.

The field in question is adjacent to Ronald Reagan Elementary School. In making the case for why voters in the southern end of the district aren’t satisfied with incumbent Bob Buster, Wildomar Mayor Ben Benoit cited the playground as an example of an unkept promise by the supervisor.

Carla Marinucci

Carla Marinucci Updated 10:58 p.m., Sunday, June 24, 2012

With the California Republican Party’s registration declining, its prospects dim and major donors panicked, two powerhouse GOP fundraisers have boldly sidestepped the party and launched an independent state super PAC to raise millions in unlimited contributions aimed at electing business-friendly candidates to the state Legislature this year.

Dan Walters

With the state budget more-or-less completed for the time being, Gov. Jerry Brown and state legislators must turn to other business, particularly to three very big and very immediate issues – water, pension reform and the bullet train – that may be even more contentious than the budget.

What the politicians do has potential effects beyond the issues themselves by influencing the November election, particularly the fate of competing tax increases.

Administrator’s Note: This appears to be an article written by the firm and published as a reported story. Very interesting!

BEST BEST & KRIEGER Published: 23 June 2012 03:27 PM

Best Best & Krieger LLP ranked 15th among the nation’s most racially diverse law firms, with nearly 20 percent of its attorneys hailing from minority backgrounds, according to The American Lawyer’s annual Diversity Scorecard, published in the magazine’s June issue.

BB&K, the Inland region’s largest law firm with 200 attorneys who work in Riverside, Ontario, Indian Wells and five other California cities as well as Washington D.C., placed in the Top 20 for the fifth year straight. In all, 233 of the nation’s largest and highest-grossing firms responded to this year’s survey, placing BB&K’s No. 15 ranking in the top 6.5 percent.

APPLE VALLEY • Some Apple Valley residents will pay higher fees for a variety of services should the Town Council pass a resolution during Tuesday night’s meeting.

The proposed hikes came during the formation of the town’s 2012-13 budget, which revealed that Apple Valley had not raised permit fees in areas such as home occupation permits, special events and conditional use permits since 2008.

Capitol Alert The latest on California politics and government June 23, 2012

Gov. Jerry Brown and Democratic leaders called their budget deal Thursday a “conceptual agreement” for good reason.

With floor votes planned in three days, Brown officials and lawmakers are still filling out major details of cuts to welfare-to-work and health care for low-income children that will determine exactly how the budget will impact programs.

Top contributors to the Mitt Romney presidential campaign spend three days at what is billed as a ‘senior leadership retreat’ in Deer Valley.

PARK CITY, Utah — It was the kind of image Mitt Romney has sought to blunt during his campaign for president: a prodigious display of wealth.

At a private retreat this weekend, major Romney campaign donors quaffed 1927 Port they’d brought in for the occasion, mingled in the lobby of a posh resort called the Chateaux at Silver Lake and watched an aerial display of Olympic ski jumpers.

With San Bernardino County election results certified Friday, Assemblyman Paul Cook (R-Yucca Valley) squeaked by Businessman Phil Liberatore (R-Whittier) and into a runoff with home builder and Tea Party-backed candidate Greg Imus (R-Lake Arrowhead) in the contest to represent the 8th Congressional District.

RANCHO CUCAMONGA – The City Council on Thursday approved a balanced budget plan for the new fiscal year at a special meeting Thursday night.

The city budget proposal involves a number of program cutbacks, including reduced library hours, while officials plan increased spending to reclassify three fire investigator positions to “captain specialists.”

Local officials say March Air Reserve Base is well positioned to receive a new generation of air refueling tankers and expect the base will be approved for that mission in the next two years.

However, with no guarantee of that approval, they are continuing to lobby and meet with congressional representatives to keep March a vital part of not only the military but of the Inland economy, they say.

Gov. Jerry Brown and Democratic lawmakers announced a budget deal Thursday that imposes harsher consequences on welfare parents who cannot find work after two years and moves 880,000 low-income children into a cheaper state health care program.

The agreement came nearly one week after Democrats, under threat of losing their pay, sent Brown a $92.1 billion spending plan that avoided severe new cuts to safety net programs for the poor.

The U.S. Supreme Court ruled Thursday that California’s largest state employee union violated the free speech rights of 28,000 so-called “fair-share” nonmembers by coercing them to finance political campaigns in 2005 and 2006.

The 7-2 ruling highlights the strained relationship between Service Employes International Union Local 1000 and its nonmember contributors and could have implications for a key November initiative that would restrict union fundraising.

Congressman Darrell Issa

BY BEN GOAD WASHINGTON BUREAU bgoad@pe.com

Published: 20 June 2012 01:24 PM

WASHINGTON — A House panel led by Inland Rep. Darrell Issa voted to hold U.S. Attorney General Eric Holder in contempt of Congress, a rare move that could lead to a criminal probe into the Justice Department’s handling of a botched anti-gun trafficking operation.

The House Committee on Oversight and Government Reform’s vote to issue a contempt citation came Wednesday, June 20, during a dramatic hearing in which the White House attempted to sidestep the contempt vote by invoking executive privilege.

After restoring a few items to Redlands’ general fund for the next fiscal year — including money for fee waivers for groups holding events in town — the City Council approved the $53.7 million spending plan.

The council added about $226,000 to the budget presented to them by City Manager N. Enrique Martinez. Councilmen Jerry Bean and Bob Gardner, who made up the council’s budget committee, said they wanted to add $95,000 to complete a revision of the housing element of the city’s general plan.

As Democratic state leaders continue budget negotiations, Gov. Jerry Brown’s tax hike on sales and upper-income earners officially qualified Wednesday for the November ballot, as did two other tax measures.

Middlemen who help investment funds get money from CalPERS received $1.85 million in fees during the past two years, a sharp drop from the $58 million collected by a former CalPERS board member in a pay-to-play scandal.

A report on “placement agent” fees given to the CalPERS board last week was the first required by reform legislation. Big fees received by Al Villalobos, a former CalPERS board member, prompted a long list of reforms.

Riverside County’s board says delays would be costly; the sheriff wanted time to study the effects on recruiting if employees pay more

BY JEFF HORSEMAN STAFF WRITER jhorseman@pe.com

Published: 19 June 2012 09:17 PM

After months of sometimes rocky talks with organized labor, Riverside County supervisors moved to reduce county pensions for new employees despite concerns from the sheriff, who wanted more time to consider how those changes would affect his ability to recruit and retain deputies.

The Board of Supervisors on Tuesday, June 19, voted 4-0 with John Benoit absent to submit an amendment to the county’s contract with the California Public Employees’ Retirement System. The amendment allows for reduced pension benefits for newly hired employees and deputies.

SAN BERNARDINO – Education and political leaders joined more than 200 other community members in welcoming Dale Marsden as incoming superintendent of the San Bernardino City Unified School District on Tuesday.

Officials cited long familiarity with Marsden’s work as leader of various education initiatives and of the Victor Elementary School District, which they said was one of the county’s best.

The San Bernardino County Board of Supervisors on Tuesday approved the forming of a joint-powers authority that would look into establishing a program to help homeowners who are upside-down on their mortgages.

The joint-powers authority (JPA) would consist of the county and the cities of Fontana and Ontario, with an opt-in agreement for other cities desiring to join. It would require a vote of approval from each respective city council in order to join the JPA.

Capitol Alert The latest on California politics and government June 20, 2012

California’s recession-battered economy is improving but at a “slower than desired pace,” says a new overview by Beacon Economics, a private firm that advises both private and public clients, including the State Controller’s Office.

It looks as though InlandPolitics.com may have been correct in its assumption last year that $250,000 from the San Manual Band of Mission Indians could influence the endorsement process of the San Bernardino County Safety Employees’ Benefit Association (SEBA).

SPRINGFIELD, Ill. (AP) — Recession-plagued states diverted scarce money away from pensions to pay for more immediate concerns, leaving a $757 billion hole in the retirement funds covering millions of public employees, according to a study released Monday.

The Pew Center on the States found 34 states failed to maintain safe levels of money in the pension funds, which most experts agree is about 80 percent of long-term obligations. Four states — Connecticut, Illinois, Kentucky and Rhode Island — didn’t even have 55 percent of the money they’ll need in the long run.

SAN BERNARDINO – The last City Council meeting of Fiscal Year 2011 passed Monday before city staff had time to prepare a budget for the year that starts July 1, so council members approved a one-month spending plan based on last year to bridge the gap.

The vote authorizes all city departments to spend one-twelfth of the amount approved for the 2011-2012 year during July.

Two newly released Riverside County grand jury reports describe hostile work environments in the county’s Waste Management and Human Resources departments. Two waste management supervisors allegedly used racial slurs to describe African-American employees.

BY JEFF HORSEMAN STAFF WRITER jhorseman@pe.com

Published: 18 June 2012 06:35 PM

At least two supervisors in Riverside County’s Waste Management Department used racial slurs against black workers, and employees in another county department were regularly bullied by superiors, according to two grand jury reports that found a pattern of hostile work conditions.

SAN BERNARDINO – A procedural step in the plan to build a high-speed bus line from Cal State San Bernardino to Loma Linda University attracted passionate debate on both sides of the issue Monday.

Acting City Manager Andrea Travis Miller indicated at a City Council meeting that the overall plan for the SBX bus line would be going forward. That prompted residents, business owners and representatives of other organizations to offer sharply divided opinions.

Capitol Alert The latest on California politics and government June 18, 2012

Senate President Pro Tem Darrell Steinberg, D-Sacramento, defended the Legislature’s deadline passage of a main budget bill Friday without most of the implementing language, responding to critics who suggested lawmakers had rushed through a plan to maintain their pay.

“You know what?” Steinberg said. “I gotta tell you, I work about 15 hours a day. And we passed a budget that is balanced in the budget year, the second year, the third year and with a surplus in the fourth year. So we’re doing our work. And we’re going to continue doing our work.”